Sens. Elizabeth Warren, D-Mass., John McCain, R-Ariz., Maria Cantwell, D-Wash., and Angus Kin, I-Maine proposed a bill that would reinstate the 1930s-era Glass-Steagall Act.

The legislation introduced by the four senators would separate "bank's traditional activities (like deposits that are backed by the Federal Deposit Insurance Corp.) from riskier activities like investment banking, insurance, swap dealing, and hedge funds," writes American Banker's Donna Borak.

"The four biggest banks are now 30% larger than they were just five years ago, and they have continued to engage in dangerous, high-risk practices," said Warren, during a Senate Banking Committee hearing on Dodd-Frank.

If the bill is passed, it would help prevent the possibility of a government bailout by making "too big to fail" financial institutions smaller and safer, they said.

For the full piece see "Warren, McCain Push for Return of Glass-Steagall" (may require subscription).